IDB $18 million loan to help prevent and combat corruption in Brazil’s public administration

Program will strengthen transparency and civil society oversight and adopt a risk management model

The Office of the Comptroller General (CGU) of Brazil will receive a loan for US$18 million from the Inter-American Development Bank (IDB) to consolidate its institutional capacity and strengthen mechanisms to prevent and combat corruption in the country’s public administration.

The initiative will strengthen the operational capacity of the CGU, which is charged with carrying out strategic measures to improve the integrity and management of public resources. The program will promote interactions between the CGU and federal public administrators and increase transparency and civil society oversight in the management of public resources, as well strengthen support activities and internal controls at the state and municipal levels.

Activities to strengthen the operational capacity of the CGU will include the promotion of good management practices in staff management and intensive use of new technologies. Models for auditing and inspection processes will be revamped and the Observatory for Public Spending will be implemented.

Interactions between the CGU and federal public administrators will be strengthened by providing a risk management model and a website containing recommendations, management support services, and best practices information. Further actions are planned to encourage civil society oversight in the use of public resources by providing training and teaching materials.

According to IDB project team leader Pedro Farias, "the operation will support the consolidation of a management and oversight model that emphasizes prevention of irregularities and social oversight through greater interaction among the CGU, public administrators, and citizens."

The program will extend these activities to subnational governmental entities through transparency websites at the state and municipal levels along with training to improve internal control units and support for the implementation of local versions of public spending observatories.

The IDB financing has a term of 15.25 years, a grace period of five years, and an interest rate based on LIBOR.